Bill Text: TX HB3169 | 2017-2018 | 85th Legislature | Engrossed

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Bill Title: Relating to the operation and administration of the Texas Bullion Depository, to depository agents, to the appropriation of money from the fees, charges, penalties, and other amounts related to the depository and deposited to the general revenue fund for that purpose, and to the provision of a related ad valorem tax exemption.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2017-05-18 - Left pending in committee [HB3169 Detail]

Download: Texas-2017-HB3169-Engrossed.html

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By: Capriglione H.B. No. 3169

A BILL TO BE ENTITLED
AN ACT
relating to the operation and administration of the Texas Bullion
Depository, to depository agents, to the appropriation of money
from the fees, charges, penalties, and other amounts related to the
depository and deposited to the general revenue fund for that
purpose, and to the provision of a related ad valorem tax exemption.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2116.001(4), (9), and (10), Government
Code, are amended to read as follows:
(4) "Deposit" means the establishment of an executory
obligation of the depository to deliver to the order of the person
establishing with the depository the obligation, on demand, a
quantity of a specified precious metal, in bullion, specie, or
other physical form [a combination of bullion and specie], equal to
the quantity of the same precious metal delivered by or on behalf of
the depositor into the custody of:
(A) the depository; or
(B) a depository agent.
(9) "Depository agent" means a person licensed in
accordance with this chapter to serve as an agent on behalf of a
current or prospective [intermediary between the] depository
account holder [and a retail customer] in making a retail
transaction in precious metals bullion or specie.
(10) "Precious metal" means a metal, including gold,
silver, and platinum group metals, including platinum, palladium,
ruthenium, osmium, iridium, and rhodium, that:
(A) bears a high value-to-weight ratio relative
to common industrial metals; and
(B) may be [customarily is] formed into bullion,
[or] specie, or other physical form.
SECTION 2. Section 2116.002, Government Code, is amended by
amending Subsection (a) and adding Subsections (c) through (i) to
read as follows:
(a) The Texas Bullion Depository is established as a program
[an agency of this state] in the office of the comptroller to
provide a bullion depository and services for the public benefit.
(c) The depository may establish and operate one or more
branch locations of the depository. Branch locations of the
depository are considered to be part of the depository.
(d) The depository may enter into contracts, as the
comptroller determines to be prudent and suitable, to facilitate
the operations of the depository and further the purposes of this
chapter.
(e) This state and the comptroller may not be held liable
for the depository or related activities of the depository. This
chapter may not be construed as creating financial or other
responsibilities for the depository to the state or to the
comptroller. This state does not pledge the full faith and credit
of this state for the benefit of the depository.
(f) Notwithstanding Chapter 2113, the depository may enter
into contracts and engage in marketing, the sale of promotional
items, advertising, and other activities to promote, market, and
advertise the depository. The comptroller may use appropriated
funds to pay for activities of the depository authorized under this
section.
(g) Notwithstanding any other provision of law, the
depository may enter into contracts for the design, manufacture,
marketing, and distribution of official commemorative items,
including coins or other items containing precious metal, to
promote, market, and advertise the depository. The depository shall
establish the purchase price for any commemorative items. The
comptroller may use appropriated funds to pay for depository
activities authorized by this subsection.
(h) The depository shall deposit any funds received from the
sale of commemorative items described by Subsection (g) to the
credit of the general revenue fund. Money deposited to the general
revenue fund under this subsection may be appropriated to the
comptroller to offset the costs of the implementation,
administration, promotion, marketing, advertising, and operation
of the depository.
(i) The comptroller may adopt rules necessary to implement
this chapter.
SECTION 3. Section 2116.003, Government Code, is amended to
read as follows:
Sec. 2116.003. DEPOSITORY ADMINISTRATION; ADMINISTRATOR.
(a) The depository is administered as a program [division] of the
office of the comptroller and under the direction and supervision
of a bullion depository administrator appointed by the comptroller
[with the advice and consent of the governor, lieutenant governor,
and senate].
(b) The administrator shall:
(1) administer, supervise, and direct the operations
and affairs of the depository and liaise with depository agents;
and
(2) liaise with the comptroller and other divisions of
the office of the comptroller to ensure that each transaction with
the depository that involves state money, that involves an agency,
a political subdivision, or another instrumentality of this state,
or that involves a private person is planned, administered, and
executed in a manner to achieve the purposes of this chapter.
(c) The administrator may appoint, subject to the approval
of the comptroller, a deputy administrator or other subordinate
officer or may employ staff as necessary and appropriate to the
efficient administration of the depository.
SECTION 4. Sections 2116.004(a) and (b), Government Code,
are amended to read as follows:
(a) The following are not available for legislative
appropriation:
(1) a deposit to the depository;
(2) precious metal [bullion or specie] held by or on
behalf of the depository or a depository agent;
(3) precious metal [bullion or specie] in transit to
or from the depository or a depository agent; and
(4) a receivable or other amount owed to the
depository in settlement of a transaction in precious metal
[bullion or specie].
(b) Precious metal [Bullion, specie,] and other assets
described by Subsection (a) are subject to redemption, liquidation,
or transfer exclusively to discharge an obligation of the
depository to depository account holders, depository agents,
bullion banks, financial institutions, or other intermediaries in
accordance with this chapter and rules adopted under this chapter.
SECTION 5. Section 2116.005, Government Code, is amended by
amending Subsections (a), (c), and (d) and adding Subsections (a-1)
and (f) to read as follows:
(a) The depository may receive a deposit of precious metal
[bullion or specie] from or on behalf of a person acting in the
person's own right, as trustee, or in another fiduciary capacity,
in accordance with rules adopted by the comptroller as appropriate
to:
(1) ensure compliance with law; and
(2) protect the interests of:
(A) the depository;
(B) depository account holders;
(C) this state and the agencies, political
subdivisions, and instrumentalities of this state; and
(D) the public at large.
(a-1) The comptroller shall develop standards and processes
for the shipping, handling, and deposit of precious metals to the
depository to ensure the integrity of and verify any precious
metals shipped to the depository for deposit.
(c) The comptroller [by rule] shall develop [adopt]
standards by which the quantities of precious metals deposited are
credited to a depositor's depository account by reference to the
particular form in which the metals were deposited, classified by
mint, denomination, weight, assay mark, or other indicator, as
applicable. The standards must conform to applicable national and
international standards of weights and measures.
(d) The comptroller [by rule] may, if the comptroller
determines that to do so is in the public interest, restrict the
forms in which deposits of precious metals may be made to those
forms that conveniently lend themselves to measurement and
accounting in units of troy ounces and standardized fractions of
troy ounces.
(f) A depository agent or other person who is acting on
behalf of an account holder or who is holding the deposits or funds
of an account holder may not commingle any deposits or funds
belonging to the depository agent or other person with the deposits
or funds of the account holder.
SECTION 6. Section 2116.006(b), Government Code, is amended
to read as follows:
(b) The depository shall make a delivery described by
Subsection (a) on demand by the presentment of a written demand
[suitable check, draft,] or digital electronic instruction to the
depository or a depository agent. The comptroller [by rule] shall
develop [adopt] the forms, standards, and processes through which
an order for delivery on demand may be made, presented, and honored.
SECTION 7. Section 2116.007, Government Code, is amended to
read as follows:
Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a)
The comptroller shall develop forms, standards, and processes by
which [In accordance with rules adopted under this chapter,] a
depository account holder may transfer any portion of the balance
of the holder's depository account by written demand [check,
draft,] or digital electronic instruction to another depository
account holder or to a person who at the time the transfer is
initiated is not a depository account holder.
(b) The depository shall adjust the depository account
balances of the depository accounts to reflect a transfer
transaction between depository account holders on presentment of
the written demand [check, draft,] or digital electronic [other]
instruction by reducing the payor's depository account balance and
increasing the depository account balance of the payee accordingly.
(c) If a depository account holder transfers to a payee who
is not a depository account holder any portion of the balance of the
holder's depository account, the depository may [shall] allow the
payee to establish a depository account by presentment of the
payor's written demand [check, draft,] or digital electronic
instruction to the depository or to a depository agent. The
depository shall credit a newly established account on behalf of
the payee and shall debit the payor's account accordingly.
SECTION 8. Section 2116.008(b), Government Code, is amended
to read as follows:
(b) The execution of a contract for a depository account
described by this section may be made [, as prescribed by rules
adopted under this chapter,] by electronic or digital transmission.
SECTION 9. The heading to Section 2116.009, Government
Code, is amended to read as follows:
Sec. 2116.009. ACCOUNT BALANCES [CAUSE OF ACTION FOR DENIAL
OF DEPOSIT LIABILITY].
SECTION 10. Section 2116.009, Government Code, is amended
by amending Subsection (b) and adding Subsections (b-1), (b-2),
and (b-3) to read as follows:
(b) The depository shall furnish depository account holders
with [depository's act of furnishing] an account statement or
passbook, whether in physical, digital, or electronic form[,
constitutes a denial of liability and the giving of such notice as
to any amount not shown on the statement or passbook].
(b-1) The depository account holder is responsible for:
(1) promptly examining each account statement
received from the depository; and
(2) giving notice of any discrepancy in the account
statement to the depository within the time frame established by
the comptroller.
(b-2) If a depository account holder does not report an
account balance discrepancy reflected on the account holder's
account statement or passbook in the appropriate time period
described by Subsection (b-1):
(1) the account holder is considered to have accepted
as accurate the account statement or passbook; and
(2) the depository account statement or passbook is
considered to be accurate.
(b-3) For purposes of this section, "account statement"
means a depository account holder's daily account balance, accessed
through the Internet website designated by the depository for that
purpose.
SECTION 11. Section 2116.010, Government Code, is amended
to read as follows:
Sec. 2116.010. FEES; SERVICE CHARGES; PAYMENTS; PENALTIES.
(a) The comptroller [by rule] may establish fees, service charges,
and penalties to be charged a depository account holder for a
service or activity regarding a depository account, including a fee
for an overdraft, an insufficient fund check or draft, or a stop
payment order.
(b) The comptroller may establish other fees and charges and
receive payments in the course of depository operations and
activities authorized by this chapter, including from transactions
and relationships authorized by Section 2116.021.
(c) The comptroller shall deposit revenue realized by the
depository under this section to the credit of the general revenue
fund.
(d) Money credited to the general revenue fund under this
section may be appropriated to the comptroller to offset the costs
of implementation, administration, promotion, marketing,
advertising, and operation of the depository.
SECTION 12. Section 2116.013, Government Code, is amended
to read as follows:
Sec. 2116.013. DEPOSITORY ACCOUNTS NOT INTEREST-BEARING.
The depository may not pay on a depository account or on any funds
held on behalf of a depository account holder:
(1) interest;
(2) an amount in the nature of interest; or
(3) a fee or other payment for the use or forbearance
of use of money, bullion, specie, or precious metals deposited to a
depository account.
SECTION 13. Subchapter A, Chapter 2116, Government Code, is
amended by adding Section 2116.0145 to read as follows:
Sec. 2116.0145. EXEMPTION FROM CREDITORS' CLAIMS. (a)
Deposits of bullion or specie held in the depository in accordance
with this chapter are exempt from claims of creditors, including
claims of creditors of a depository account holder or a successor in
interest of a depository account holder.
(b) Except as provided by Subsection (c), the rights of a
depository account holder in regard to any deposits of bullion or
specie held in the depository are exempt from attachment, levy,
garnishment, execution, and seizure for the satisfaction of any
debt, judgment, or claim against a depository account holder or
successor in interest of a depository account holder.
(c) This section does not apply to the claim of a creditor of
a depository account holder or a successor in interest of a
depository account holder for a debt, judgment, lien, or claim,
including a tax delinquency, asserted by or owed to:
(1) the state;
(2) a person who has perfected a pledge made under
Section 2116.014(d); or
(3) a person who is owed child support arrearages by
the depository account holder, reflected in a child support lien
notice that complies with the requirements of Section 157.313,
Family Code.
(d) The depository may take any necessary and appropriate
action to effectuate the transfer of a depository account, or all or
part of a depository account balance, to a creditor with a claim
described by Subsection (c).
(e) This section does not permit a debtor to exempt bullion
or specie held in a depository account from property of the estate
in a bankruptcy proceeding.
SECTION 14. Section 2116.021, Government Code, is amended
to read as follows:
Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS. The
depository may [shall] enter into transactions and relationships
with bullion banks, depositories, dealers, central banks, banks
approved by the Internal Revenue Service or nonbanks acting as
custodians for individual retirement accounts, sovereign wealth
funds, financial institutions, precious metals exchanges,
international nongovernmental organizations, intermediaries, and
other persons, located inside or outside of this state or inside or
outside of the United States, as the comptroller determines to be
prudent and suitable to facilitate the operations of the depository
and to further the purposes of this chapter.
SECTION 15. Section 2116.023, Government Code, is amended
by amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) On receipt of notice of any transaction described by
Subsection (a), with respect to all or any portion of the balance of
a depository account, and on direction of the attorney general, the
depository shall suspend withdrawal privileges associated with the
balances of the depository account until suitable substitute
arrangements may be effected in accordance with the representation
of the depository by the attorney general and rules of the
comptroller to enable the registered account holder to take
delivery of the precious metals represented by the account balances
in question. A voluntary transfer of a depository account balance
or of a depository account among depository account holders may
continue to take place unaffected by the suspension, and the
depository shall recognize the transfer to the full extent
authorized by this chapter, the representation of the depository by
the attorney general, and rules adopted under this chapter.
(d) On receipt of notice of any transaction described by
Subsection (a), the depository shall refer the notice to the
attorney general for representation, and the attorney general shall
represent the depository in any matter described by Subsection (a).
SECTION 16. Section 2116.024, Government Code, is amended
to read as follows:
Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller
[by rule] shall establish the references by which the official
exchange rate for pricing precious metals transactions in terms of
United States dollars or other currency must be established at the
time of a depository transaction. The comptroller shall establish
procedures and facilities through which the rates are made
discoverable at all reasonable times by system participants, both
on a real-time basis and retrospectively.
SECTION 17. Section 2116.025, Government Code, is amended
to read as follows:
Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF
TAXABLE GAINS. The comptroller [by rule] shall establish
procedures and requirements for the depository and depository
agents designed to minimize the burden to system participants of
accounting for and reporting taxable gains and losses arising out
of depository transactions as denominated in United States dollars
or another currency.
SECTION 18. Subchapter A, Chapter 2116, Government Code, is
amended by adding Sections 2116.027, 2116.028, and 2116.029 to read
as follows:
Sec. 2116.027. CONFIDENTIALITY OF RECORDS. (a) Except as
otherwise provided by Section 2116.028 and this section, the
depository's records are subject to public inspection to the extent
authorized by Chapter 552.
(b) The following information is confidential and is exempt
from disclosure under Chapter 552:
(1) records and information related to the
depository's physical security, information security, or
information designed to ensure the integrity and security of the
depository, including:
(A) access codes;
(B) passwords;
(C) signatures;
(D) specifications;
(E) technical details;
(F) operating procedures;
(G) locations; and
(H) financial information on expenditures for
depository security;
(2) records relating to individual accounts or to
current or prospective depository account holders that are in the
custody of the depository or in the custody of a vendor performing
services related to the depository;
(3) records related to setting depository fees,
service charges, penalties, or other charges or payments;
(4) records related to establishing standards under
Sections 2116.005(c) and (d); and
(5) operational information, or other information,
that would give advantage to competitors or bidders.
(c) Notwithstanding Subsection (b)(2), depository account
information may be disclosed:
(1) to a depository account holder regarding the
depository account holder's account;
(2) to a state or federal agency as necessary to
administer the program or as required by applicable law;
(3) to a vendor providing services to the depository
or to a current or prospective depository account holder;
(4) in response to a subpoena issued under applicable
law;
(5) if compiled as collective information that does
not include any identifying information about a person; or
(6) with the express written permission of a
depository account holder.
Sec. 2116.028. INTELLECTUAL PROPERTY. (a) The depository
may:
(1) apply for, register, secure, hold, and protect
under the laws of the United States or any state or nation:
(A) a patent for the invention, discovery, or
improvement of any process, machine, manufacture, or composition of
matter;
(B) a copyright for an original work of
authorship fixed in any tangible medium of expression, known or
later developed, from which it can be perceived, reproduced, or
otherwise communicated, either directly or with the aid of a
machine or device;
(C) a trademark, service mark, collective mark,
or certification mark for a word, name, symbol, device, or slogan
that the depository uses to identify and distinguish the
depository's goods and services from other goods and services; or
(D) other evidence of protection or exclusivity
issued for intellectual property;
(2) contract with a person for the reproduction,
public performance, display, distribution, advertising, sale,
lease, marketing, licensing, sale, use, or other distribution of
the depository's intellectual property;
(3) obtain under a contract described in Subdivision
(2) a royalty, license right, or other appropriate means of
securing reasonable compensation for the exercise of the
depository's intellectual property rights; and
(4) waive or reduce the amount of compensation secured
by contract under Subdivision (3) if the depository determines that
the waiver or reduction will:
(A) further a goal or mission of the depository;
and
(B) result in a net benefit to the depository.
(b) Intellectual property of the depository is excepted
from required disclosure under Chapter 552:
(1) beginning on the date the depository decides to
seek a patent, trademark, service mark, collective mark,
certification mark, or other evidence of protection of exclusivity
concerning the property; and
(2) ending on the date the depository receives a
decision on the depository's application for a patent, trademark,
service mark, collective mark, certification mark, or other
evidence of protection of exclusivity concerning the property.
(c) The comptroller shall deposit to the credit of the
general revenue fund revenue realized by the depository under this
section.
(d) Money credited to the general revenue fund under this
section may be appropriated to the comptroller to offset the costs
of implementation, administration, promotion, marketing,
advertising, and operation of the depository.
(e) The comptroller may establish intellectual property
policies.
Sec. 2116.029. ADVERTISING, SIGNAGE, AND DISCLOSURES BY
THIRD PARTIES. (a) In this section, "third party" means a person
who is authorized to provide a service relating to the depository,
including a depository agent, a person who enters into a
transactional or other relationship with the depository, or a
person selected to operate or provide services to the depository
under this chapter.
(b) Third party advertising, marketing, promotional or
written material, or signage created or used for commercial
purposes related to the depository, in written form or in any other
form, may not be used until the comptroller has approved its use.
(c) The comptroller may require that a third party who
creates advertising, marketing, promotional or written material,
or signage created or used for commercial purposes related to the
depository include certain approved disclosures or identifying
marks, as the commissioner determines to be appropriate, in the
entity's advertising, marketing, promotional or written material,
or signage.
SECTION 19. Section 2116.051, Government Code, is amended
to read as follows:
Sec. 2116.051. USE OF DEPOSITORY AGENTS. Current and
prospective [The] depository account holders may [shall] use
private, independently managed firms and institutions licensed as
depository agents [as intermediaries] to conduct [retail]
transactions in bullion and specie on behalf of [the depository
with] current and prospective depository account holders.
SECTION 20. Section 2116.052, Government Code, is amended
to read as follows:
Sec. 2116.052. ELECTRONIC INFORMATION SHARING SYSTEMS AND
PROCESSES. A [The comptroller by rule shall require a] depository
agent shall [to] maintain suitable systems and processes for
electronic information sharing and communication with the
comptroller and the depository to ensure that all transactions
effected on behalf of current and prospective [the] depository
account holders are reported to and integrated into the
depository's records not later than 11:59:59 p.m. on the date of
each transaction.
SECTION 21. Section 151.002(b)(9-c), Finance Code, is
amended to read as follows:
(9-c) "Depository agent services" means services
rendered [to the general public] for or on behalf of current or
prospective depository account holders of the Texas Bullion
Depository in the nature of purchasing, selling, transferring,
accepting, transporting, delivering, or otherwise dealing in
precious metals bullion or specie in connection with the creation,
transfer, clearing, settlement, or liquidation of the rights and
interests of a depository account holder and a direct or indirect
transferee of a depository account holder, as those terms are
defined by Subchapter J. The term "depository agent services" does
not include:
(A) participation as a party or counterparty to a
transaction, including an agreement with respect to a transaction,
in or in connection with a contract for the purchase or sale of a
person's rights and interests as a depository account holder, as a
cash contract for present delivery, a cash contract for deferred
shipment or delivery, or a contract for future delivery, where the
underlying deliverable consists of the depository account holder's
interest in the depository account, rather than the underlying
precious metal represented by the depository account balance;
(B) the opening, transfer, settlement, or
liquidation of any derivative of a contract described by Paragraph
(A), including a forward transaction, swap transaction, currency
transaction, future transaction, index transaction, or option on or
other derivative of a transaction of any of those types, in the
nature of a cap transaction, floor transaction, collar transaction,
repurchase transaction, reverse repurchase transaction,
buy-and-sell-back transaction, securities lending transaction, or
other financial instrument or interest, including an option with
respect to a transaction, or any combination of these transactions;
or
(C) the rendition of services exclusively in
support of the opening, transfer, settlement, or liquidation of
transaction derivatives described by Paragraph (B) through a
central counterparty, such as those customarily rendered by a
clearinghouse, clearing association, or clearing corporation, or
through an interbank payment system, physical or electronic trading
facility, broker or brokerage firm, or similar entity, facility,
system, or organization.
SECTION 22. Subchapter J, Chapter 151, Finance Code, is
amended by adding Section 151.8521 to read as follows:
Sec. 151.8521. LICENSE CATEGORIES; EXEMPTIONS FROM
LICENSING. (a) The commissioner, in consultation with and subject
to approval by the comptroller, shall create defined categories of
licenses for depository agents, with specific application
requirements for each different category of license. The licensing
categories created under this subsection may be differentiated on
the basis of the type and value of authorized precious metal
transactions for a depository agent in each category.
(b) Requirements for each category of depository agent
license created under Subsection (a) may differ on the basis of:
(1) capital and security requirements;
(2) insurance requirements;
(3) type of depository agent services provided;
(4) availability of safe and secure storage and
transport of precious metals;
(5) other licensing requirements; or
(6) qualifications, as appropriate, to fulfill the
requirements of Chapter 2116, Government Code.
(c) In adopting application requirements for the depository
agent license categories created by the commissioner under
Subsection (a), the commissioner shall ensure that the
requirements, including any licensing fees, enable qualified
individuals and firms to apply for a license and provide for the
safety and security of depository account holders and the
depository.
(d) The commissioner, in consultation with and subject to
the approval of the comptroller, shall determine whether any
person, transaction, or class of persons is exempt from depository
agent licensing under Section 151.003(10).
SECTION 23. Section 151.853(a), Finance Code, is amended to
read as follows:
(a) A person may not engage in the business of rendering
depository agent services or advertise, solicit, or hold itself out
as a person that engages in the business of depository agent
services unless the person:
(1) is licensed under this subchapter [and has
received the requisite certifications from the comptroller of its
facilities, systems, processes, and procedures as required by
Chapter 2116, Government Code, or rules adopted under that
chapter]; or
(2) is excluded from licensing requirements under
Section 151.003, or as otherwise determined under Section
151.8521(d).
SECTION 24. Section 151.855, Finance Code, is amended to
read as follows:
Sec. 151.855. APPLICATION AND ACCOMPANYING FEE,
STATEMENTS, AND SECURITY. (a) An applicant for a depository agent
license must submit an application in accordance with Section
151.203 and applicable requirements adopted under Section
151.8521.
(b) At the time an application for a depository agent
license is submitted, an applicant must file with the department
any fee, information, documentation, or security required as
provided by Section 151.8521 for the category of license for which
the person is applying, which may include:
(1) an application fee in the amount established by
commission rule;
(2) audited financial statements and other financial
documentation that is determined to be reliable that are
satisfactory to the commissioner for purposes of determining
whether the applicant has the minimum net worth required under
applicable rules and is likely to maintain the required minimum net
worth if a license is issued; [and]
(3) security in an [the] amount not to exceed [of]
$500,000 that meets the requirements of applicable rules and an
undertaking or agreement that the applicant will increase or
supplement the security to equal the aggregate security required by
the commissioner before the issuance of the license and the start of
operations; and
(4) additional security that may be required by the
commissioner in the form of permissible investments, additional
surety, or in any other form considered appropriate to protect
depository account holders and the depository and to comply with
applicable regulatory requirements.
(c) The commissioner may adopt rules to implement
Subsection (b)(4).
SECTION 25. Section 151.858, Finance Code, is amended to
read as follows:
Sec. 151.858. LIABILITY OF LICENSE HOLDER. A depository
agent license holder is liable for the delivery to or for the
depository account of [the depository or] each depositor, as
applicable, of all bullion, specie, and money payable or
deliverable in connection with the transactions in which the
license holder engages on behalf of the depositor [depository].
SECTION 26. The heading to Section 151.860, Finance Code,
is amended to read as follows:
Sec. 151.860. DISCLOSURE AND OTHER REQUIREMENTS.
SECTION 27. Section 151.860, Finance Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) A depository agent license holder must comply with the
requirements of Section 2116.029, Government Code.
(d) The commissioner, in consultation with the comptroller,
shall adopt processes and procedures for interactions between a
depository agent license holder and a depository account holder to
ensure compliance with this chapter, Chapter 2116, Government Code,
and other applicable regulatory requirements.
(e) A depository agent license holder or other person who is
acting on behalf of an account holder may not commingle deposits or
funds belonging to the depository agent or other person with the
deposits or funds of a depository account holder.
SECTION 28. Subchapter B, Chapter 11, Tax Code, is amended
by adding Section 11.141 to read as follows:
Sec. 11.141. PRECIOUS METAL HELD IN TEXAS BULLION
DEPOSITORY. (a) For purposes of this section, "precious metal" has
the meaning assigned by Section 2116.001, Government Code.
(b) A person is entitled to an exemption from taxation of
the precious metal that the person owns and that is held in the
Texas Bullion Depository established under Chapter 2116,
Government Code, regardless of whether the precious metal is held
or used by the person for the production of income.
(c) Notwithstanding Section 11.14(c), the governing body of
a taxing unit may not provide for the taxation of precious metal
exempted from taxation under Subsection (b).
SECTION 29. Section 11.42(b), Tax Code, is amended to read
as follows:
(b) An exemption authorized by Section 11.11 or 11.141 is
effective immediately on qualification for the exemption.
SECTION 30. Section 11.43(a), Tax Code, is amended to read
as follows:
(a) To receive an exemption, a person claiming the
exemption, other than an exemption authorized by Section 11.11,
11.12, 11.14, 11.141, 11.145, 11.146, 11.15, 11.16, 11.161, or
11.25 [of this code], must apply for the exemption. To apply for an
exemption, a person must file an exemption application form with
the chief appraiser for each appraisal district in which the
property subject to the claimed exemption has situs.
SECTION 31. Sections 2116.009(a), (c), (d), (e), and (f),
Government Code, are repealed.
SECTION 32. (a) Except as provided by Subsection (b) of
this section:
(1) this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution; and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2017.
(b) Section 11.141, Tax Code, as added by this Act, and
Sections 11.42(b) and 11.43(a), Tax Code, as amended by this Act,
take effect January 1, 2018, but only if the constitutional
amendment proposed by the 85th Legislature, Regular Session, 2017,
authorizing the legislature to exempt from ad valorem taxation
precious metal held in the Texas Bullion Depository is approved by
the voters. If that amendment is not approved by the voters, those
sections have no effect.